Russia's finance ministry says it will service its external debt in rubles from now on. The announcement came after the United States allowed the expiry of sanction waiver that enabled American investors to receive payments from Russia in dollars.

A finance ministry statement said the US decision ''primarily infringes on the rights of the foreign investors in Russian debt instruments.'' It blamed the US move for making it impossible for Russia to make bond interest or redemption payments in dollars.

The ministry stressed that Russia is ready to continue to fulfil its obligations.

The end of the US waiver is likely to increase the chances of Russia being considered to be in default.
Finance Minister Anton Siluanov said the current situation has nothing in common with Russia's debt default in 1998.

He said there is cash and willingness to pay now. He said that the current situation has been artificially created by an unfriendly country.